July 15, 2009

Soy futures on the Dalian Commodity Exchange settled higher Wednesday, in line with a technical rebound overnight on the Chicago Board of Trade.

 

The most actively traded January 2010 soy contract settled RMB22 a metric tonne higher at RMB3,543/tonne.

 

The contract is still consolidating with little momentum to rise further, and traders are waiting on the sidelines for more clear trading guidance, said Tianqi Futures in a note.

 

Prices haven't hit bottom yet and any rebound could be an opportunity to sell, said some analysts.

 

The U.S. Commodities Futures Trading Commission's warning on imposing position limits on energy commodities for speculators, favorable U.S. soy weather and sluggish domestic soy demand pushed the market sharply lower last week, and now the only possible reason for traders to buy long is any weather-related developments in major U.S. producing areas, said Jiusan Oil and Fat Co. in a note.

 

Trading volume for all soy contracts rose to 114,178 lots from 79,236 lots Tuesday.

 

Open interest fell 334 lots to 349,394 lots.

 

Corn futures settled little changed, while soyoil futures, soymeal futures and palm oil futures all settled higher.

 

Wednesday's settlement prices in yuan a metric tonne for benchmark contracts and volume for all contracts in lots (One lot is equivalent to 10 tonnes):

                             

Contract     Settlement     Price        Change        Volume

Soy            Jan 2010       3,543        Up   22        114,178

Corn           Jan 2010      1,626         Up    1          62,970

Soymeal     Jan 2010      2,812         Up   23     1,205,246

Palm Oil      Jan 2010      5,688         Up   96        698,786

Soyoil         Jan 2010      7,046         Up   76        884,304